₦airaland Forum

stcool:
Nobody should tell anyone otherwise here....UBA result is a mess for a bank that just raised money last year via rights issue.

Q1 is even a write off....₦801B revenue but only ₦147B profit.

Since TOE has done his own....on Monday the market will reward him.

jonnysessy:
By Monday good companies will be rewarded by investors, while bad companies will be punished by investors. It is as simple as that. This will be my first time in NGX hearing that a company paid interim dividend and would not pay final dividend. Or is the final dividend still coming ? UBA just disappointed itself and not me. We move
UBA had rode on the back of GTCO and Zenith to get to this present state. This is called bandwagon effect of companies in the same sector. It is well.

Lesson learnt : Always be wary of results that are delayed, whether by CBN or the company itself. If a company result is fantastic they will rush to publish the result, but if a result is bad they will find a way to delay it under any guise.

stcool:
It's not by hopping up and down a private jet and entering the back of a Mercedes Maybach for meetings...

GTbank and Zenith that paid N12.76 & N 10 dividends don't have 2 heads. As an investor on the NGX shine your eyes 👀 with zero emotional attachment.

Baba don port to Oil and Gas ....it has all his attention for now.

emmanuelewumi:
What type of investor are you?


I am a combination of the following

1. Value investor
2. Dividend investor
3. Growth Investor
4. Quality investor

ogawisdom:
Tony invested your dividend in seplat, make una calm down. I sold off all my UBA and GT bank shares around October last year and put everything in Zenith at average cost of 64 , today that decision is legendary as Zenith has proved its worth. Zenith is my only banking stock. I am not even happy it's flying too fast as I am hoping to buy more sub 100 in May, June or July.

Mankind2024:
In Defense of UBA Plc – FY 2025

Business is not always a bed of roses, just as life rarely moves in a straight line. In all sincerity, investors have every reason to feel frustrated and to direct strong criticism at the management of UBA Plc and its Group Chairman, Tony Elumelu. Market reactions to financial results can be emotional, especially when expectations are not met.

However, investors should also remember that stock markets are dynamic. The best-performing asset today can become tomorrow’s laggard—and vice versa. Short-term price movements often reflect sentiment rather than long-term value.

One undeniable fact from the financial statements is that UBA Plc remains profitable. That alone does not solve every concern, but it does indicate that the underlying business continues to generate earnings. For those disappointed by the share price reaction, it may be helpful to think in terms of compounding assets. Businesses that continue to grow earnings—despite volatility—can still create long-term value. In such situations, value is not necessarily destroyed; rather, price fluctuations may occur in the near to mid-term due to market sentiment, portfolio rebalancing, or profit-taking by both individual and institutional investors.

Anyone who has attempted real-sector production in challenging operating environments will appreciate how difficult it can be to sustain profitability. As a personal example, I recently explored the feasibility of establishing a 20-ton-per-day cassava processing plant. During the study, the cost of providing reliable 24-hour power for roughly 300 operating days per year effectively erased the projected profit, even under optimistic assumptions. That experience reinforced how operational headwinds—energy costs, infrastructure gaps, financing, and currency risk—can weigh heavily on businesses. Ultimately, I chose to abandon the project and focus instead on equity investing and broader geographic diversification.

Against that backdrop, it is reasonable to expect that UBA, like many companies operating across multiple emerging markets, will face periodic pressure. Yet the institution has demonstrated resilience over time. I believe the bank can strengthen its position and address current concerns through execution and consistent performance. This is not blind optimism, but a view grounded in the long-term nature of banking businesses and compounding earnings.

Short-term investors and speculators often feel the most pain during drawdowns. Long-term investors, on the other hand, may see volatility differently—either as a reason to hold steady or, depending on conviction, as an opportunity to accumulate at lower prices. Personally, I intend to consider adding to my position if valuations become more attractive. Markets can be uncomfortable during declines, but periods of pessimism have historically preceded recoveries for fundamentally sound companies.

When performance improves, sentiment usually follows. Until then, patience, discipline, and a long-term perspective remain essential.

robobo:
What the CBN is trying to achieve with the 100% provision for insider related credit (whether performing or not)is to force bank directors with interest in other businesses not to borrow from the bank they own/ are directors in. This will ensure that those other businesses they own does not enjoy interest rate subsidy from their directors bank and also ensure they dont tie down the bank they own with bad credit. In short it will force those other businesses to compete for funding with thier competitors at a fair rate

robobo:
This is not exactly as u stated it (i.e. overstated profit). The mechanics of calculating impairment under ifrs 9 differs from the CBN prudential guidelines (as well as each countries prudential guideline). The rule per CBN is that if the CBN calculation is higher you transfer from your profit to the reserve but if IFRS is higher you maintain the figure from IFRS meaning you cant take out of the reserve. I suspect the difference will largely be because of the new 100% provision for insider related borrowings.

Thanks for the info. I did not know of the difference between ifrs and the CBN impairment standards. The CBN one appears too stiff to me though.

Meanwhile All Nigerian banks (and most international big banks all over the world) adopt the IFRS 9 standard for financial reporting, so their will always be a difference on impairment calculation every year. Thekey is the difference should not be as large as this one from UBA hence my thinking that it is from the new rule of 100% provision for insider related credit which is peculiar to UBA in this instance

faoogoke:
Tony is waiting to buy from those who decide to dump UBA from monday

megawealth01:
Kano State hands branded underwear to women. 😂😂

There’s nothing I have not seen in Naija. Kano State must be very cold, otherwise why would a governor desperately want to be closer to the warmth between the legs of women?

The action itself is not as shocking as the thought process that led to it. Imagine sitting down and wondering what to give to women of your State and then the idea to print your picture on pants and hand over to them hit your mind.

The courage to make this kind of indescribable choice is most worthy to be a PhD study in a psychiatric institution.

AGBA will buy the shares of the COY producing this soon

EDUECO:
Every where gba gbos upon UBA results!

Na Lagos Agberos just full this thread.

All this bank management and CBN done agree to write off some of the profit as non performing loans.This one na coded yahoo! EFCC should investigate them!

Agbalowomeri:
This is not a forbearance issue though. More like credit risk exposure

megawealth01:
ACCESS will pay dividends

That last minute movement to 36+ wasn't coincidence

ppogba:
In other words, the discerning with shares in the big elephant bank should rather shift their hope, attention and gaze elsewhere. The non performing loans in their books is a behemothic Goliath. He that has ears, let him hear.

ppogba:
In other words, the discerning with shares in the big elephant bank should rather shift their hope, attention and gaze elsewhere. The non performing loans in their books is a behemothic Goliath. He that has ears, let him hear.

megawealth01:
ACCESS will pay dividends

That last minute movement to 36+ wasn't coincidence

faoogoke:
Tony is waiting to buy from those who decide to dump UBA from monday

faoogoke:
Tony is waiting to buy from those who decide to dump UBA from monday

sterlingD:
Wow wow wow wonderment shall never end